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S1483................................................by JUDICIARY AND RULES MOTOR VEHICLES - INSURANCE - Amends existing law to provide that a person convicted of failure to have motor vehicle liability insurance for the first time shall be required to maintain proof of financial responsibility for one year following conviction and for three years for a second and any subsequent conviction within five years and to require notification of the person of the requirements for maintaining proof of financial responsibility upon a second and subsequent conviction; to provide an infraction penalty for a first conviction and misdemeanor penalties for a second and any subsequent conviction within five years for failure to maintain motor vehicle insurance, failure to carry proof of insurance or driving a motor vehicle without insurance; and to require the Idaho Transportation Department to provide notice to the convicted person of subsequent penalties. 02/16 Senate intro - 1st rdg - to printing 02/17 Rpt prt - to Jud 02/24 Rpt out - rec d/p - to 2nd rdg 02/25 2nd rdg - to 3rd rdg 02/27 3rd rdg - PASSED - 33-1-1 AYES--Andreason, Boatright, Branch, Bunderson, Burtenshaw, Cameron, Crow, Danielson, Darrington, Deide, Dunklin, Frasure, Geddes, Hansen, Hawkins, Ingram, Ipsen, Keough, King, Lee, Noh, Parry, Richardson, Riggs, Risch, Sandy, Schroeder, Sorensen, Stennett, Sweeney, Thorne, Twiggs, Wheeler NAYS--Whitworth Absent and excused--McLaughlin Floor Sponsors - Geddes, Sorrensen Title apvd - to House 03/02 House intro - 1st rdg - to Jud 03/20 Rpt out - rec d/p - to 2nd rdg 03/20 Rls susp - PASSED - 66-1-3 AYES -- Alltus, Barraclough, Barrett, Bell, Bieter, Bivens, Black(15), Black(23), Boe, Bruneel, Callister, Campbell, Chase, Clark, Crane, Crow, Cuddy, Deal, Denney, Ellsworth, Field(13), Field(20), Gagner, Geddes, Gould, Hadley, Hansen, Henbest, Hornbeck, Jaquet, Jones(9), Jones(22), Jones(20), Judd, Kellogg, Kempton, Kendell, Kjellander, Kunz, Lake, Linford, Loertscher, Mader, Marley, McKague, Meyer, Miller, Mortensen, Newcomb, Pischner, Pomeroy, Reynolds, Richman, Ridinger, Robison, Schaefer, Stevenson, Stone, Stubbs, Tilman, Tippets, Trail, Watson, Wheeler, Zimmermann, Mr Speaker NAYS -- Stoicheff Absent and excused -- Sali, Taylor, Wood Floor Sponsor - Jones(9) Title apvd - to Senate 03/23 To enrol - rpt enrol - Pres signed Sp signed - to Governor 03/30 Governor signed Session Law Chapter 423 Effective: 01/01/99
S1483|||| LEGISLATURE OF THE STATE OF IDAHO |||| Fifty-fourth Legislature Second Regular Session - 1998IN THE SENATE SENATE BILL NO. 1483 BY JUDICIARY AND RULES COMMITTEE 1 AN ACT 2 RELATING TO MOTOR VEHICLE INSURANCE; AMENDING SECTION 49-1208, IDAHO CODE, TO 3 PROVIDE THAT ANY PERSON CONVICTED OF A VIOLATION OF SECTIONS 49-1229, 4 49-1232 OR 49-1428, IDAHO CODE, FOR THE FIRST TIME SHALL BE REQUIRED TO 5 MAINTAIN PROOF OF FINANCIAL RESPONSIBILITY FOR ONE YEAR FOLLOWING THE CON- 6 VICTION AND FOR THREE YEARS FOR A SECOND AND ANY SUBSEQUENT CONVICTION 7 WITHIN FIVE YEARS AND TO REQUIRE THAT THE DEPARTMENT NOTIFY THE PERSON OF 8 THE REQUIREMENTS FOR MAINTAINING PROOF OF FINANCIAL RESPONSIBILITY UPON A 9 SECOND AND SUBSEQUENT CONVICTION; AMENDING SECTION 49-1220, IDAHO CODE, TO 10 PROVIDE FOR CANCELLATION OR RETURN OF PROOF OF FINANCIAL RESPONSIBILITY 11 WITH RESPECT TO A PERSON SUBJECT TO THE ONE-YEAR REQUIREMENT, TO PROHIBIT 12 ISSUANCE OF A DRIVER'S LICENSE TO A PERSON SUBJECT TO THE ONE-YEAR 13 REQUIREMENT WHOSE PROOF HAS BEEN CANCELLED OR RETURNED UNLESS PROOF IS 14 REESTABLISHED FOR THE REMAINDER OF THE PERIOD AND TO MAKE A TECHNICAL COR- 15 RECTION; AMENDING SECTION 49-1229, IDAHO CODE, TO PROVIDE AN EXCEPTION TO 16 THE REQUIREMENT FOR CONTINUOUS INSURANCE COVERAGE, TO PROVIDE AN INFRAC- 17 TION PENALTY FOR A FIRST CONVICTION AND MISDEMEANOR PENALTIES FOR A SECOND 18 AND ANY SUBSEQUENT CONVICTION WITHIN FIVE YEARS OF A FAILURE TO PROVIDE 19 CONTINUOUS MOTOR VEHICLE LIABILITY INSURANCE, TO REQUIRE NOTICE OF PENAL- 20 TIES BY THE DEPARTMENT AND TO MAKE A TECHNICAL CORRECTION; AMENDING SEC- 21 TION 49-1232, IDAHO CODE, TO PROVIDE AN INFRACTION PENALTY FOR A FIRST 22 CONVICTION AND MISDEMEANOR PENALTIES FOR A SECOND AND ANY SUBSEQUENT CON- 23 VICTION WITHIN FIVE YEARS OF A FAILURE TO CARRY PROOF OF INSURANCE IN A 24 MOTOR VEHICLE AND TO REQUIRE NOTICE OF PENALTIES BY THE DEPARTMENT; AMEND- 25 ING SECTION 49-1428, IDAHO CODE, TO PROVIDE AN INFRACTION PENALTY FOR A 26 FIRST CONVICTION AND MISDEMEANOR PENALTIES FOR A SECOND AND ANY SUBSEQUENT 27 CONVICTION WITHIN FIVE YEARS OF OPERATING A MOTOR VEHICLE WITHOUT INSUR- 28 ANCE, TO REQUIRE NOTICE OF PENALTIES BY THE DEPARTMENT AND TO MAKE A TECH- 29 NICAL CORRECTION; AND PROVIDING AN EFFECTIVE DATE. 30 Be It Enacted by the Legislature of the State of Idaho: 31 SECTION 1. That Section 49-1208, Idaho Code, be, and the same is hereby 32 amended to read as follows: 33 49-1208. PROOF REQUIRED UPON CERTAIN CONVICTIONS. (1) If a person is not 34 licensed, but by final order or judgment is convicted of or forfeits any bail 35 or collateral deposited to secure an appearance for trial or has entered a 36 plea of guilty for any offense requiring the suspension or revocation of the 37 driver's license, or for operating a motor vehicle upon the highways without 38 being licensed to do so, no driver's license shall be issued to that person 39 until he gives and maintains proof of financial responsibility. 40 (2) Whenever the department or a court suspends, or the department 41 revokes a resident's driver's license or nonresident's driving privilege by 42 reason of a conviction, forfeiture of bail, or upon a plea or finding of 43 guilty, the license or privilege shall remain suspended or revoked unless the 2 1 person shall have previously given or shall immediately give and maintain 2 proof of financial responsibility. 3 (3) Any person who is convicted of violating the provisions of either 4 section 49-1229, 49-1232 or 49-1428, Idaho Code, for the first time 5 shall give and maintain proof of financial responsibility throughout the one 6 (1) year period following the conviction, and for a second conviction and any 7 subsequent conviction within five (5) years, shall give and maintain 8 proof of financial responsibility throughout the three (3) year period follow- 9 ing such conviction. The department shall notify any person subject to 10 this subsection of the requirements for maintaining proof of financial respon- 11 sibility for a second and any subsequent conviction. 12 (4) Whenever a person is required to maintain proof of financial respon- 13 sibility, and who is not a resident of Idaho, files and maintains proof of 14 financial responsibility in his home state the department shall reinstate the 15 person's driving privileges as long as proof of financial responsibility is 16 maintained in the person's home state. 17 SECTION 2. That Section 49-1220, Idaho Code, be, and the same is hereby 18 amended to read as follows: 19 49-1220. DURATION OF PROOF -- WHEN PROOF MAY BE CANCELLED OR RETURNED. 20 (1) The department shall upon request consent to the immediate cancellation of 21 any bond or certificate of insurance, or the department shall direct and the 22 state treasurer shall return to the person entitled thereto any money or secu- 23 rities deposited pursuant to this chapter, or the department shall waive the 24 requirement of filing proof, in any of the following events: 25 (a) At any time after one (1) year or three (3) years from 26 the date the proof was required , as provided in section 49-1208, 27 Idaho Code, when, during the one (1) year or three (3) 28 year period preceding the request, the department has not received record 29 of a conviction or a forfeiture of bail which would require or permit the 30 suspension or revocation of the driver's license or nonresident's operat- 31 ing privilege of the person by or for whom the proof was furnished; or 32 (b) In the event of the death of the person on whose behalf the proof was 33 filed or the permanent incapacity of the person to operate a motor vehi- 34 cle; or 35 (c) In the event the person who has given proof surrenders his driver's 36 license to the department. 37 (2) The department shall not consent to the cancellation of any bond or 38 the return of any money or securities in the event any action for damages upon 39 a liability covered by the proof is then pending, or any judgment upon any 40 liability is then unsatisfied, or in the event the person who has filed the 41 bond or deposited the money or securities has, within one (1) year immediately 42 preceding the request, been involved as an operator or owner in any motor 43 vehicle accident resulting in injury or damage to the person or property of 44 others. An affidavit of the applicant as to the nonexistence of the facts, or 45 that he has been released from all of his liability, or has been finally adju- 46 dicated not to be liable for the injury or damage, shall be sufficient evi- 47 dence in the absence of evidence to the contrary in the records of the depart- 48 ment. 49 (3) Whenever any person whose proof has beencanceled50 cancelled or returned applies for a driver's license within a period 51 of one (1) year or within a period of three (3) years from the 52 date proof was originally required , as provided in section 49-1208, 53 Idaho Code , the application shall be refused unless the applicant shall 3 1 reestablish proof for the remainder of the one (1) year or three 2 (3) year period. 3 SECTION 3. That Section 49-1229, Idaho Code, be, and the same is hereby 4 amended to read as follows: 5 49-1229. REQUIRED MOTOR VEHICLE INSURANCE. (1) Every owner of a motor 6 vehicle which is registered and operated in Idaho by the owner or with his 7 permission shall continuously , except as provided in section 41-2516, 8 Idaho Code, provide insurance against loss resulting from liability 9 imposed by law for bodily injury or death or damage to property suffered by 10 any person caused by maintenance or use of motor vehicles described therein in 11 a n amount not less than that required by section 49-117, Idaho 12 Code, and shall demonstrate the existence of any other coverage required by 13 this title or a certificate of self-insurance issued by the department pursu- 14 ant to section 49-1224, Idaho Code, for each motor vehicle to be registered. 15 (2) A motor vehicle owner who prefers to post an indemnity bond with the 16 director of the department of insurance in lieu of obtaining a policy of lia- 17 bility insurance may do so. Such bond shall guarantee that any loss resulting 18 from liability imposed by law for bodily injury, death or damage to property 19 suffered by any person caused by accident and arising out of the operation, 20 maintenance and use of the motor vehicle sought to be registered shall be paid 21 within thirty (30) days. The indemnity bonds shall guarantee payment in an 22 amount no less than fifty thousand dollars ($50,000) for any one (1) accident 23 of which fifteen thousand dollars ($15,000) is for property damage, for each 24 vehicle registered up to a maximum of one hundred twenty thousand dollars 25 ($120,000) for five (5) or more vehicles. 26 (3) Any bond given in connection with this chapter shall be, and shall be 27 construed to be, a continuing instrument and shall cover the period for which 28 the motor vehicle is to be registered and operated. Such bond shall be on a 29 form approved by the director of insurance with a surety company authorized to 30 do business in the state. 31 (4) In addition to any motor vehicle insurance required by the provisions 32 of this chapter, any motor carrier operating under authority of a permit 33 issued by the public utilities commission shall comply with the insurance 34 requirements of section 61-804, Idaho Code. 35 (5) It is an infraction punishable by a fine of seventy-five dollars 36 ($75.00) for any person to violate the provisions of this section for 37 the first time. A second and any subsequent conviction for a violation of the 38 provisions of this section within a period of five (5) years shall be a misde- 39 meanor, punishable by a fine not exceeding one thousand dollars ($1,000), or 40 by imprisonment in the county jail not exceeding six (6) months, or both. The 41 department shall notify any person convicted of a violation of this section of 42 the penalties which may be imposed for a second and any subsequent conviction 43 . 44 SECTION 4. That Section 49-1232, Idaho Code, be, and the same is hereby 45 amended to read as follows: 46 49-1232. CERTIFICATE OR PROOF OF LIABILITY INSURANCE TO BE CARRIED IN 47 MOTOR VEHICLE. (1) A certificate or proof of liability insurance shall be in 48 the possession of the operator of every motor vehicle or present in every 49 motor vehicle at all times when the vehicle is operated within this state. The 50 certificate or proof of liability insurance shall be provided for inspection 51 to any peace officer upon request to the operator of any motor vehicle. No 4 1 person shall be convicted of violating this section if that person produces at 2 any time prior to conviction the certificate or proof of liability insurance 3 covering the motor vehicle that person is accused of operating in violation of 4 this section, where the certificate or proof of liability insurance demon- 5 strates the existence of liability insurance described in section 49-1212, 6 Idaho Code, which was in effect at the time of occurrence of the violation. 7 (2) It is an infraction punishable by a fine of seventy-five dollars 8 ($75.00) for any person to violate the provisions of this section for 9 the first time. A second and any subsequent conviction for a violation of the 10 provisions of this section within five (5) years shall be a misdemeanor, pun- 11 ishable by a fine not exceeding one thousand dollars ($1,000), or by impris- 12 onment in the county jail not exceeding six (6) months, or both. The depart- 13 ment shall notify any person convicted of a violation of this section of the 14 penalties which may be imposed for a second and any subsequent conviction 15 . 16 SECTION 5. That Section 49-1428, Idaho Code, be, and the same is hereby 17 amended to read as follows: 18 49-1428. FINANCIAL RESPONSIBILITY. (1) It shall be unlawful for any per- 19 son to operate a motor vehicle upon highways without a valid policy of liabil- 20 ity insurance in full force and effect in an amount not less than that pro- 21 vided in section 49-117, Idaho Code, or unless the person has been issued a 22 certificate of self - insurance pursuant to section 49-1224, Idaho 23 Code, or has previously posted an indemnity bond with the director of insur- 24 ance as provided in section 49-1229, Idaho Code. 25 (2) It is an infraction punishable by a fine of seventy-five dollars 26 ($75.00) for any person to violate the provisions of this section for 27 the first time. A second and any subsequent conviction of a violation of the 28 provisions of this section within five (5) years shall be a misdemeanor, pun- 29 ishable by a fine not exceeding one thousand dollars ($1,000), or by impris- 30 onment in the county jail not exceeding six (6) months, or both. The depart- 31 ment shall notify any person convicted of a violation of this section of the 32 penalties which may be imposed for a second and any subsequent conviction 33 . 34 SECTION 6. This act shall be in full force and effect on and after Janu- 35 ary 1, 1999.
STATEMENT OF PURPOSE RS 07987 The proposed changes to Section 49-1208, 49-1220, 49-1229, 491232 and 49-1428 will restructure the penalties associated with operating a motor vehicle without the mandatory liability insurance or proof of financial responsibility. A first offense will continue to be an infraction with a seventy-five ($75) fine. A second or subsequent conviction within a 5-year time period will be increased to the level of a misdemeanor. This proposed legislation also modifies the program requiring insurance companies to provide proof of financial responsibility to the Department of Transportation for a one (1) year period for a first-time offense; and a three (3) year period for a subsequent offense within a 5-year time frame. The effective date of this legislation is January 1, 1999. This effective date was requested by the Department of Transportation, and will allow necessary time to modify the infrastructure to manage this effort. FISCAL IMPACT An estimated $17,100 one-time fee will be required by the Idaho Transportation Department's automated computer system. An unpredictable cost associated with additional court time can be anticipated for second or multiple offenses, however, such costs will be recovered by court fines imposed. CONTACT Name: Senator Robert L. Geddes - Phone 332-1406 Senator Sheila Sorensen - Phone 332-1332 S1483